IRS Instruction 1099-R and 5498 – IRS Forms, Instructions, Pubs 2026

IRS Instruction 1099-R and 5498 – IRS Forms, Instructions, Pubs 2026 – Navigating tax forms related to retirement plans and IRAs can be complex, but understanding IRS Forms 1099-R and 5498 is essential for accurate reporting. These forms handle distributions from pensions, annuities, retirement plans, IRAs, and more, as well as contributions to IRAs. Whether you’re a plan administrator, trustee, or individual taxpayer, this SEO-optimized guide breaks down the instructions, filing requirements, common mistakes, and recent changes for the 2025 tax year. We’ll cover who must file, key boxes, deadlines, penalties, and tips to avoid errors, drawing from official IRS guidelines.

What Is IRS Form 1099-R and Who Must File It?

Form 1099-R is used to report distributions of $10 or more from various retirement and related plans. This includes profit-sharing plans, pensions, annuities, IRAs (traditional, Roth, SEP, SIMPLE), insurance contracts, and governmental section 457(b) plans. Trustees, custodians, plan administrators, or issuers must file this form for each recipient receiving qualifying distributions, such as death benefits, prohibited transactions, loans treated as distributions, or excess contributions.

Key scenarios requiring filing include:

  • Reportable death benefits under section 6050Y.
  • Distributions from Roth IRAs, including conversions.
  • Corrective distributions from failed ADP/ACP tests.
  • Permissible withdrawals under section 414(w).
  • Designated Roth nonelective or matching contributions.

Employers or payers report these to help recipients determine taxable income on their tax returns.

Here’s a sample of what Form 1099-R looks like for 2025:

Key Boxes on Form 1099-R: A Breakdown

The form includes several boxes to detail the distribution. Here’s a summary of the most important ones:

  • Box 1 (Gross Distribution): Total amount distributed before withholdings, including direct rollovers and conversions.
  • Box 2a (Taxable Amount): The portion subject to tax; enter 0 for nontaxable rollovers.
  • Box 2b: Check if the taxable amount isn’t determined or if it’s a total distribution.
  • Box 4 (Federal Income Tax Withheld): Typically 20% for eligible rollover distributions not directly rolled over.
  • Box 5: Employee or designated Roth contributions recovered tax-free.
  • Box 6: Net unrealized appreciation in employer securities for lump-sum distributions.
  • Box 7 (Distribution Codes): Critical codes like 1 (early distribution, no exception), 4 (death), 7 (normal), or new code Y for qualified charitable distributions (QCDs).
  • Box 10: Amount allocable to in-plan Roth rollovers within 5 years.
  • Boxes 14-19: State and local tax information (optional).

Use up to two codes in Box 7, and always check the IRA/SEP/SIMPLE box if applicable.

What Is IRS Form 5498 and Who Must File It?

Form 5498 reports contributions to IRAs, including traditional, Roth, SEP, and SIMPLE IRAs, as well as fair market value (FMV) and required minimum distributions (RMDs). Trustees or issuers of IRAs must file this form, even if no contributions were made, for accounts like deemed IRAs under section 408(q) or inherited IRAs. It covers rollovers, conversions, recharacterizations, and repayments of qualified distributions (e.g., for disasters or birth/adoption).

This form helps the IRS track IRA activity and ensures compliance with contribution limits and RMD rules.

Visual example of Form 5498:

Key Boxes on Form 5498: Essential Details

Form 5498 has boxes for various contribution types and account values:

  • Box 1 (IRA Contributions): Regular contributions (excluding rollovers, etc.), including excess ones.
  • Box 2 (Rollover Contributions): Direct rollovers from qualified plans or military payments.
  • Box 3 (Roth IRA Conversion Amount): Conversions from traditional IRAs.
  • Box 4 (Recharacterized Contributions): Amounts recharacterized plus earnings.
  • Box 5 (FMV of Account): Year-end value as of December 31, 2025.
  • Box 7: Checkboxes indicating IRA type (e.g., SEP, SIMPLE, Roth).
  • Box 8 (SEP Contributions): Employer contributions to SEP IRAs, including Roth SEPs.
  • Box 9 (SIMPLE Contributions): Contributions to SIMPLE IRAs, including Roth SIMPLEs.
  • Box 10 (Roth IRA Contributions): Non-SEP/SIMPLE Roth contributions.
  • Box 11: Check if an RMD is required for 2026 (for those turning 73).
  • Boxes 12a/12b: Optional RMD date and amount.
  • Boxes 13a-13c: Postponed or late contributions with codes.
  • Boxes 14a/14b: Repayments of qualified distributions with codes (e.g., QR for reservists).
  • Boxes 15a/15b: FMV of hard-to-value assets with codes (A-G for types like stock or real estate).

For inherited IRAs, report separate forms for the decedent and beneficiaries.

Filing Deadlines and Methods for Forms 1099-R and 5498

  • Form 1099-R: File with the IRS by February 28, 2026 (paper) or March 31, 2026 (electronic). Furnish recipient copies by January 31, 2026.
  • Form 5498: File with the IRS by June 1, 2026. Furnish FMV and RMD info to participants by February 2, 2026, and contribution info by June 1, 2026.

Electronic filing is encouraged via the IRS’s IRIS portal. Paper filers use Form 1096 as a transmittal. Online fillable copies are available for recipient statements.

Penalties for Non-Compliance and Late Filing

Failure to file, late filing, or inaccurate reporting can result in penalties starting at $60 per form (up to $1.2 million for large businesses). Intentional disregard can lead to higher fines. Common issues like missing TINs or incorrect amounts amplify risks. Always correct errors promptly using corrected forms to minimize penalties.

Recent Changes to Forms 1099-R and 5498 for 2025

The 2025 instructions include several updates:

  • Automatic rollover threshold increased from $5,000 to $7,000 starting January 1, 2024.
  • New distribution code Y for QCDs on Form 1099-R (optional for 2025 reporting).
  • Expanded reporting for Roth SEP and SIMPLE IRAs, including contributions and distributions.
  • Emphasis on reporting FMV of specified hard-to-value assets.
  • No recharacterizations allowed for post-2017 conversions.

These changes reflect ongoing adjustments to retirement tax rules, including SECURE 2.0 provisions.

Common Mistakes to Avoid When Filing Forms 1099-R and 5498

Errors can lead to IRS notices or taxpayer filing mistakes. Top issues include:

  • Reporting contributions for the wrong tax year on Form 5498.
  • Failing to report Roth conversions properly.
  • Issuing duplicate Forms 5498.
  • Missing or incorrect RMD information.
  • Entry errors on Form 1099-R, like transposed numbers or omitted income.
  • Not reporting small errors (e.g., $25 discrepancies) that still require corrections.

To prevent these, double-check TINs, use software for batch filing, and consult IRS Pub. 590-A/B for IRA rules.

These forms often intersect with others:

  • Form 1099-DIV for ESOP dividends.
  • Form 945 for withheld taxes.
  • Form W-4P for withholding elections.
  • Pub. 1220 for electronic filing specs.

Provide a section 402(f) notice for eligible rollovers, truncate TINs on recipient copies, and report separately for nonresident aliens using Form 1042-S.

Conclusion: Stay Compliant with IRS Retirement Reporting

Mastering IRS Forms 1099-R and 5498 ensures smooth tax compliance for retirement distributions and IRA contributions in 2025. By following these instructions, avoiding common pitfalls, and staying updated on changes, you can minimize errors and penalties. For personalized advice, consult a tax professional or visit IRS.gov for the full instructions and forms. Remember, accurate reporting helps both payers and recipients avoid IRS scrutiny. If you’re handling these for the first time, start early to meet deadlines.